Turbo tax says I must mail Form 8453. 8453 wants me to attach Form 8949. One of my sales on Form 8949 says see attached statement.....do I need to attach a statement?

[stangbyphi]

Sale included shares where the cost basis was not reported to the IRS.  Do I include a copy of my 1099-B? A statement of how a determined cost basis? Just the 8949?

[AnthonyC]

Yes, the attached statement that you need to send is your Form 1099-Bs (and/or other statement detailing transactions) with Form 8453.  Below is a more expansive answer on this topic.

The answer below is going to assume that you choose to use the summary transaction method of reporting your 1099B transactions instead of entering individual sales.

Short Answer:  You do not need to mail Form 8949, but you do need to mail your supporting statements, such as your brokerage statements (Form 1099B) and Form 8453.

When you use this summary method of reporting (i.e. you just entered your totals and not each individual transaction), in some cases, the IRS still wants the supporting details sent to them.  

Note:  In limited situations, you’re allowed to summarize investment sales without providing complete details.  If you are summarizing multiple investment sales that are either Box A sales or Box D sales, and there are no adjustments necessary (i.e. Code W for wash sales), then it is not necessary to mail in a statement with further details.  Turbotax will tell you this when your sales meet the criteria and will not prompt you to mail any statements.

So, if you are being prompted to mail further statements, Form 8453 says to attach Form 8949, Sales and Other Dispositions of Capital Assets (or a statement with the same information), if you elect not to report your transactions electronically on Form 8949.

When you use the summary method, TurboTax only produces a Form 8949 with the summary totals that you entered, not the individual transactions, so the Form 8949 that is included in your return is NOT sufficient for this purpose.  (Though, you can include it with the mailing)

You need to use Form 8453 to mail the brokerage (or other) statements that show the details of your transactions.  Statements should include the following items for each transaction (these are usually reported on your Form 1099-Bs:(  

• Description
• Date acquired, 
• Date sold, 
• Sales price, 
• Cost basis, 
• Gain or loss for each sale,
• Sale category based on how the sale was reported to you and the IRS, and
• In some cases, there will be an adjustment code and adjustment amount. 

NOTE: As discussed above, any sales summaries that include only Box A or Box D sales, and which have no adjustments to gain/loss, do not need to be included on a statement mailed to the IRS. 

If you are e-filing your tax return, then mail your statements along with Form 8453 to: 

Internal Revenue Service

Attn: Shipping and Receiving, 0254 

Receipt and Control Branch 

Austin, TX 73344-0254 

[tapanforce]

Do I need to mail these forms after my return is accepted?

[ralphchelala]

Can the software please warn that using the summary method will force the user to physically mail additional forms. I would have filed them individually if I knew that.

[henny168]

Exactly.  BTW, could I amend my return to file the transactions separately to avoid mailing form 8453?

[neemazad]

+1 to warning users about physically mailing additional forms.

[neemazad]

(Btw, to answer the question about amending the return to avoid mailing form 8453... I believe the amending form Form 1040X itself cannot be e-filed and must itself be mailed in. So it sounds like we'd need to mail something in either way once the "mistake" is made to file a return using the summary method.

See <a rel="nofollow" target="_blank" href="https://www.irs.gov/faqs/electronic-filing-e-file/amended-returns/amended-returns">https://www.irs.g...> )

[rulomix]

Yeah, this is a pain in the neck!!!

[deathtoll2001]

There is now a note on the page, but the circumstances around this piece are still very confusing.  I apparently have to mail an additional form, even though my return already includes an 8949 with individual transactions.  This is apparently because I opted to take the foreign tax credit instead of deduction, which makes absolutely no sense.

[nb15]

Hi @AnthonyC ,

Is this still relevant for 2020 (2019 tax year)?

I filled out all the transactions online, and even attached PDFs of the foreign transactions that were not reported to the IRS. (Box C and F transactions). As far as I can tell, IRS has all the necessary information - it would have received my 1099-Bs directly, and the PDF statements for transactions that were not reported on 1099-Bs (attached in Turbotax, I'm assuming they will be e-filed).

Thanks!

Neil

[vdk]

I see the cost basis is reported on the form, but turbotax still says there is missing info and I should send form 1099B. I don't understand why

[SteveHouse]

The instructions on the 8453 form make it clear:

Don't attach any form or document that isn't shown on Form 8453 next to the checkboxes. If you are required to mail in any documentation not listed on Form 8453 you can't file the tax return electronically.

Form 8453 does not list 1099-B forms, so I can't e-file???

Can someone clear this up for me?

[npierson7]

In most cases, if you required to mail form 8453 to the IRS, you still can file your return electronically, and print and mail the form to the IRS after you e-filed.

[fanfare]

your details can be on form 8949, or something else that has the same information.

if you are attaching something else, mark the 8949 checkbox.

You must mail within three business days after your e-Filed return is ACCEPTED.

[SteveHouse]

Thanks, Never would have guessed it.